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THE Bottled Water Industr Y - An Overvie W: Market Consists of Sales of Bottled Water Services and Related Goods by
THE Bottled Water Industr Y - An Overvie W: Market Consists of Sales of Bottled Water Services and Related Goods by
BOTTLED water, distilled water or any of the foregoing to which chemicals may be
added and which are put into sealed bottles, packages or other containers,
WATER
to be sold for domestic consumption or culinary use. The Bottled Water
INDUSTR
market consists of sales of bottled water services and related goods by
Y – AN entities (organizations, sole traders and partnerships) that provide bottled
OVERVIE water. The bottled water industry includes establishments that purify and
W supply bottle water.
stable and still o 50,000 people die every day due to water contamination.
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1.2 OVERVIEW OF THE MARKET SHARE
Currently, Bisleri continues to lead in the Rs 700-1,000 crore organized, packaged water market
with an estimated 40 per cent market share, followed by Kinley at 28 per cent and Aquafina with
an 11 per cent share. In terms of volumes, the North and West remain Bisleri's biggest
performing markets, despite the brand's sustained national-level presence. The market has been
growing for the last three years at an unimaginable rate of 80%. The market size of bottled water
is expected to surpass the size of soft drinks market very soon in the near future.
Due to the demand for water, a large number of "mineral water manufacturers" have been
spawned selling little more than tap water to the unsuspecting consumer, the majority of whom
are still very native about mineral' water.
Pepsi Co's Aquafina brand, which debuted the bottled water business in September 1999, targets
the youth sector and concentrates on just one pack size, 750ml priced ten rupees.
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Coca-Cola is the most recent entrant (May 2000) with its Kinley, brand and in a controversial
and unsuccessful marketing campaign, it obtained an endorsement from the Federation of Family
Physicians' Association of India (FFPAI), a lesser known body of doctors for its brand.
Estimates show that there are around 100 small regional players in the bottle water market and
the number have been growing at an unbelievable 70%-100% per year, year on year, for the past
four years. This has enticed a number of international brands in the market besides Coca-Cola
and PepsiCo-Nestle (Pure Life), Britannia, Lever, United Breweries and Shaw Wallace. Danone
Pairs launched Evian some time back and even imported hundreds of cases for VIP guests
celebrating the Hindu festival, KumbhMela.
The government has been forced to sit up, take notice and tighten regulations after
comprehensive sample tests were taken by consumer groups and found that a number of the
smaller and more unscrupulous "opportunistic" players were selling little more than tap water.
Until recently the government of had set standards only for mineral water and even the PFA
(Prevention of Food Adulteration Act) and BIS (Bureau of Indian Standards) were deficient
when compared to international markets.
Under the new regulations 48 specifications are to be met for water to become mineral water and
for packaged drinking water there are 43 specifications. But small players are bound to fall out of
the market by April 1, 2001 when the new regulations were supposed to be enforced.
1.3 SEGMENTATION
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1.4 CONSUMER HABITS & PRACTICES
Consumers are growing more health conscious and are more careful of their drinking habits.
Brand loyalty is very low as all the products taste the same so they can buy just any product
which is on the shelf, same as that of soft drinks and fruit beverages.
Availability in the chilled form and brand awareness plays a crucial role in purchase
decisions.
While there is no aversion to consumption of mineral water by any age group, this product is
mainly consumed by the people in the age group of 20-35 years who have less attraction of
soft drinks or other synthetic drinks whereas youngsters look in for soft drinks and fruit
beverages to quench their thirst.
Visibility is another factor that should be taken care of by the companies as consumers are
not very brand loyal and consume whatever is in front of them.
Consumers often drink bottled water as an alternative to tap water. They think it tastes better (no
chlorine taste) and perceive it to be safer and of better quality. They also look for security: food
scandals in industrialized countries and water-borne diseases in developing countries greatly
influence consumers’ attitudes. Consumers buy bottled water to feel well and to lose weight.
Bottled water is perceived as a healthy alternative to other beverages. Thus, for the aerated
beverages bottled water offers a potential threat.
Moreover, increasing urbanization, causing declines in tap-water quality, can also explain the
popularity. Because it is untreated, natural mineral water is perceived as “natural” by city
dwellers looking for genuine products. Higher living standards and auto usage enable people to
easily bring home more and heavier bottles of water. At the office, a bottle of water is now a
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common sight on the desk, next to the computer and the telephone. Drinking bottled water is a
sign of a rise in the social scale. Above all, bottled water has become a huge marketing success.
To learn about the domestic packaged drinking water market, its market share and Brand
Bisleri in detail.
To find about consumers' and retailers' brand preference
To see whether there is a threat to the mineral water market from water purifiers and soft
drinks.
Whether the people of Delhi & its Ncr are happy, paying for water.
Whether the people of Delhi & its Ncr are getting health conscious.
To find the retailers view on the mineral water market and to assess the future prospect of
the market.
To find the potential of Mineral water market in Delhi & its Ncr.
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CHAPTER THREE
LITERATURE REVIEW
3.1 BOTTLED WATER
Consistent quality and taste are two of the principal differences between bottled water and tap
water. While bottled water originates from protected sources - largely from underground aquifers
and springs - tap water comes mostly from rivers and lakes.
Another factor to consider is the distance tap water must travel and what it goes through before it
reaches the tap. In compliance with international regulations, bottled water is sealed and
packaged in sanitary containers. If a bottled water product is found to be substandard, it can be
recalled. This can’t happen in case of tap water.
According to regulations in the US, when bottled water is sourced from a community water
system the product label must state so clearly. However, if the water is subject to distillation, de
ionization or reverse osmosis, it can be categorized that way, and does not have to state on its
label that it is from a community water system or from a municipal source.
Processing methods such as reverse osmosis remove most chemical and microbiological
contaminants.
The casing tube itself is protected with stainless steel mesh to give a preliminary filtration to
the water.
Ultra filtration gives water reduction in turbidity and adds sparkle
Activated carbon purifier to remove color and odour in water
Reverse osmosis membrane has porosity of less than 0.01 micron the process renders water
free of microorganisms and also reduces dissolved solids
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www.nrdc.org/water/drinking/
To ensure mineral water is held safe free from contamination, ultraviolet treatment and
ionization process is carried out. Ozone is unstable trivalent oxygen, a very powerful bactericide
with no side effect, as it disintegrates into oxygen within couple of hours.
Sterilization effect of ionized water continues even after water is packaged, thereby ensuring
safety of Mineral Water up to its final packing. To ensure high quality of packing materials,
components like caps and bottles are manufactured in-house from resins of quality suppliers.
Good Manufacturing Practices are stringently followed at all times. Processing is religiously
monitored at every stage. Testing source water, processing parameters, microbial quality,
packaging material integrity and finally, shelf life studies, forms an integral part of quality and
safety assurance plan.
Labeling
The Name of the Product shall be the appropriate terms as defined. Water containing carbon
dioxide that emerges from the source and is packaged directly with its entrapped gas or from
which the gas is mechanically separated and later reintroduced at a level not higher than
naturally occurring in the water, may bear on its label the words naturally carbonated or naturally
sparkling. Packaged water which contains carbon dioxide at levels than those naturally occurring
in the source of the product shall be labeled with the words carbonated, carbonation added or
sparkling.
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www.nrdc.org/water/drinking/
3.3 MARKET CATEGORISATION
The market initially had only one SKU of 1 litre this was followed a by a number of smaller and
bigger SKUs. Based on these SKUs we can divide the entire market into two segments:
Each of these consumption markets have a number of SKUs under it. Some of the most
consumed SKUs in retail market are 500ml, 1 litre, 1.2 litre, 1.5 litres, 2 litres, and 5 litres.
Recently Bailley has launched 330ml pack targeted against 330ml pack size of soft drinks
especially the aluminum-can drinkers.
The institution market is largely constituted by the hotel industry, caterers, offices, parties, travel,
tourism, hospitals etc. The SKUs that are available in this market are 10 litres and above besides
this we have pack size of 250ml plastic cups.
The market can also be divided on the basis of the price at which this bottled water is available
into three categories:
Presently, Evian of Danone group; Perrier and San-Pellegrino of Nestle belong to super premium
category. Catch, Himalayan, Brilliant etc. belong to premium local natural mineral water
category.
All other brands like Bisleri, Bailley, Kinley, Aquafina etc. belong to popular or plain bottled
water category.
The packaged drinking water market is often categorized as per the clients they have:
Corporate, Theaters, Gymkhanas, College Canteens, Retail Outlets, Hotels and Restaurants and
Occasions.
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www.nrdc.org/water/drinking
3.4 INDIA TO FACE SEVERE WATER CRISIS IN THE FUTURE
The per capita water availability in India is projected to decline to about 1,140 cubic meters per
year in 2050 from 1820 cubic meters per year recorded in 2001 according to the
Intergovernmental Panel on Climate Change (IPCC).
"India will see a severe water crisis in 20 years if the government doesn't change its ways and
clashes are already taking place because the resource is so scarce." This was the warning by the
World Bank way back in 2005. "Estimates reveal that by 2020, India's demand for water will
exceed all sources of supply.
All these reports point to just one thing for us now. That we should he on serving water and be
judicious in its use. If water is wasted today then it is our future generation which will suffer
because of it. So everyone needs to make a point from now to save water in any way they can.
If we cannot do that then the future is very clear. Water will be one of the most expensive
commodities and everyone will have to buy water shelling out huge amount of money for the
same. The implications could be worse than these if action is not taken now.
Water infrastructure projects should also speed up in the country through public-private
partnership. This is of immense importance in a country where rural population has very little
access to safe drinking water. What these infrastructure projects will also ensure is employment
generation and in the current global crisis the country need to stand up and generate local
employment through these opportunities and challenges.
The fastest growth in the consumption of bottled water in the world has been recorded in India
according to a new study conducted by the US based earth policy institute. It even questions the
rising thirst for bottled water with consumption tripling in India over the past five years.
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World Bank report
3.5 INDIAN SCENARIO
In 1967, Bisleri set up a bottling plant for manufacturing and marketing its mineral water but that
time the concept of mineral water was failed. The brand was later on sold off to Parle group
acquired the Bisleri of Italy for launching soda water but later launched bottled water also. The
launch at that time was a big flop as concept of buying Water that ton the Indian public did not
accept form. The market remained dormant for quite long (for a period of 20 years or so). The
market throughout this period was formed only by the premium products that too available
through 5-star hotels.
In early 1990s with onset of liberalization policy by the Indian government, coming in of cola
majors, sell out of local soft drink brands of Campa, Thumb’s Up, Gold Spot etc. by pane to
coke and other factors led Bisleri to test waters again. Bisleri re-launched its bottled water in
1994. With exposure of media and exposure to international life styles, deteriorating levels of
portable water, increases in a number of water borne classes, increases in awareness about health
and hygiene and other related factors led to acceptability of concept of mineral water. The
market has not looked back ever since then and has grown leaps and bounds to such an extent
that a number of genuine as well as fly-by-night operations have entered it to milk it.
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www.bottledwaterindia.web
The Big Boom
The bottle water industry has tin-doubted been one of the fastest growing business sectors in
India. The way it has grown since the early 1990s is indeed astounding.
And the high growth rate is expected to continue into future. Starling from a small base, the
growth was exponential up to early years of current century. Thereafter, there was a decline in
the pace of growth, and we now witness a comparatively linear growth, but nonetheless fairly
rapid.
The bottle water industry is reported to have growth nine-fold over the past decade from around
15 million cases in 1997-98 to an estimated 130 million eases in2007-08 (I case=48 liters)this
traction to a compounded annual growth rate 24% per annum. In same year, the growth rate has
been as high as 40%. The market size is further projected to increase to 265 million cases by the
year 2014-15 this works out of a projected growth rate of nearly 11% a year. While one has
crossed the exponential growth phase experienced during the industry's nascent period, there is
lot of untapped potential and the industry would continue to experience double digit growth rates
for several years to come."'
In terms of value, the Indian bottled water segment is estimated currently at Rs.3000cr per
annum and expected to double within the next seven years. The international players currently
see India as the destination with a lot of growth possibility. India is already the tenth largest
bottled water consumer in the world.
A major part of the demand for bottled water stems from out of home consumption by people on
the move, because the quality and safety of drinking water available otherwise is suspected the
fear of contracting water-home infection prompts many to go in for bottled water during journey
and when one is away from home. Of course, sonic also consume bottled water (or high price
mineral water in some instance) as a style statement.
In part the industry pews its existence to the poor quality of portable Water supplied by the
municipal authorities/water supply boards and further to the inadequate hygienic standard
prevalent in most public eating place, where the water served of often contaminated. The demand
has been further fueled due to increasing income and changing lifestyle of the urban middle and
upper classes of the population. It is also triggered by advertising and wide —spread distribution
of the product.
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3
www.bottledwaterindia.web
Life Cycle of the Industry
Here 1990 was selected as base year and from 1990 sales in bottled water has increased year by
year but not that much level to 2004-05 so this covers under introduction stage of bottled water
industry. After increase in awareness among people and known side effects of non purified
water, people have moved from tap water to bottled water and this change has increased sales of
bottled water in market. Until 1992, the demand for bottled water in India was mostly limited to
foreign tourists, corporate meetings, conferences, etc. The introduction of bulk packaging
extended the market to new and numerous consumers (Jose Raphel, 1998). In this period firms
focus on branding and patenting for maintaining right to produce played an important role.
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After 2005-06 bottled water sales increased in market and it showed growing stage of industry,
because people started using bottled water for status and for health safety. Now in 2008 bottled
water industry grew at a rate of 38% so its sales increased faster as compared to past year so we
can say that the industry came under growth stage. Maintaining existing features and adding new
features to the product was seen here, broader audience was available for industry product.
In India for instance, the bottled water industry, with more than 100 companies, has a turnover of
about US$ 70 million, growing at an average rate of 50% every year. This sector employs 15'000 to
20'000 people in the country (Jose Raphel, 1998).
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3.6 Hypothesis to be tested
Following are the set of hypothesis established to answer various research problems.
Ha: People are not aware of all the brands of mineral water.
Ho: 5 ltr and 20 ltr bottles of mineral water are the most preferred ones, by the
population.
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Ha: 5 ltr and 10 ltr bottles of mineral water are not preferred by the population.
7. Reason for growth during the last five years, according to retailers.
Ho: Tremendous growth in mineral water segment is not owing to increased health
consciousness and scarcity of portable drinking water amongst the population.
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CHAPTER FOUR
RESEARCH METHODOLOGY
4.1RESEARCH DESIGN
A research design is purely and simply the framework or plan for a study that guides the
collection and analysis of data. The Survey Research was used in this project, because retailer’s
and consumers feedback was necessary for obtaining the data. Starting a research project needs a
basic preparation regarding the issues related to the topic selected. For this one needs to do some
deskwork. Deskwork includes:
2. Collection of secondary data related to the topic from Internet, magazines & newspapers.
5. All the above activities at the initial stage of the project must be completed & then the main
part follows.
4.2DATA SOURCES
a) Primary data: These are those data which are collected afresh and for the first time, and thus
happen to be original in character. I have used the structured questionnaires.
b) Secondary data: These are those which have already been collected by someone else and
which have already been passed through the statistical process. I have collected it from the
sources like internet, published data etc.
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Sample Size:
I took 100 consumers and 50 retailers as my respondents. They were selected by random
sampling method because in this case systematic sampling is not possible since one cannot say
whether a person is using mineral water or not.
Sampling Technique
Random sampling technique will be used in this research project.
Mode of Survey
The mode of survey for the retailers and consumer’s was the filling up of the questionnaires.
For that close and open ended questionnaires for the consumer & for retailer were
prepared.
Analytical Tools
After collection of data another work necessary for any data collector is to correctly analysis that
data. Statistical tools helped me to correctly analyze the data. I used here the software named Ms
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EXCEL for analysis of the data. I used following statistical tools:
Hypothesis Testing
Chi-square test will be used when the set of observed frequencies obtained after experimentation
have to be supported by hypothesis or theory. The test is known as χ2 test of goodness of fit and
is used to test if the deviation between observation (experiment) and hypothesis may be
attributed to chance (fluctuations of sampling).χ2also enables us to explain whether or not two
attributes are associated or related to each other.
To test the goodness of fit: It helps to test goodness of fit by using null and alternate hypothesis.
STATISTICAL TOOLS TO BE USED
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CHAPTER FIVE
ANALYSIS AND INTERPRETATION
CONSUMER RELATED SURVEY
56%
60%
50%
40%
24%
30%
20% 12%
8%
10%
0%
Bisleri Kinley Aquafina Others
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NAME OF BRAND CONSUMER PREFERENCES
Bisleri- Most Preferred 56%
Kinley 24%
Aquafina 12%
Others 8%
According to the survey conducted in Delhi & its Ncr it was analyzed that 56% of the users
go for Bisleri Water and 24% for Kinley while there are 8% of the respondents who still go
for other packaged drinking water.
HYPOTHESIS TESTING
DF=4-1=3
At alpha .05 and 3 degrees of freedom, the critical value from the chi square
distribution table is 7.82.
Always 28 25 3 9 0.36
Often 27 25 2 4 0.16
χ2=15.6
Interpretation:
As the Chi-square test statistics value 15.6 exceeds the critical value of 7.82
hence null hypothesis is rejected and our alternative hypothesis is accepted.
Hence it can be concluded that that 34% of the mineral water users go in for
an occasional use while there are still 9% of the respondents who never go
for packaged water.
3. RESPONDENTS CHOICE AMONGST MINERAL
WATER AND SOFT DRINKS
48% respondents agreed to always choosing mineral water over soft drinks
when thirsty while 15% chose it often, 25% agreed to choosing it sometimes
while 12% consumers said they never have mineral water when thirsty.
HYPOTHESIS TESTING
DF=4-1=3
At alpha .05 and 3 degrees of freedom, the critical value from the chi square
distribution table is 7.82.
Always 45 25 20 400 16
Sometimes 25 25 0 0 0
X2=26.76
Interpretation:
As the Chi-square test statistics value 26.73 exceeds the critical value 7.82
hence null hypothesis is rejected and hence we reached at the result that our
alternative hypothesis is accepted. Hence it can be concluded that that 48% of
users always go in for mineral water when they are thirsty.
The survey conducted in showed that 40% of the respondents were aware of
0-2 brands packaged drinking water, 50% of 3-5 brands, 10% were aware of
6-10 brands while none were aware of more than 10 brands.
HYPOTHESIS TESTING
Ha: People are not aware of all the brands of mineral water.
DF=4-1=3At alpha .05 and 3 degrees of freedom, the critical value from the
chi square distribution table is 7.82.
0-2 40 25 15 225 9
3-5 50 25 25 625 25
As the Chi-square test statistics value 68 exceeds the critical value of 7.82
hence null hypothesis is rejected and hence we reached at the result that our
alternative hypothesis is accepted. Hence it can be concluded that most of the
people know only about the main brands which are owned by the big
companies and are advertised hugely. Mainly 3 -5 brands only comes to the
minds of the customer in regards to mineral water.
1 ltr 20%
5 ltr 5%
20 ltr 15%
According to the survey 60% of the respondents preferred to buy 500ml
bottles, 20% preferred 1ltr bottles while 5%& 15% preferred 5ltr and 20 ltr
respectively.
HYPOTHESIS TESTING
Ho: 5 ltr and 20 ltr bottles of mineral water are the most preferred ones,
by the population.
Ha: 5 ltr and 10 ltr bottles of mineral water are not preferred by the
population .
DF=4-1=3
At alpha .05 and 3 degrees of freedom, the critical value from the chi square
distribution table is 7.82
1 ltr 20 25 -5 25 1
χ2 =70
Interpretation:
As the Chi-square test statistics value 70 exceeds the critical value of 7.82
hence null hypothesis is rejected and hence we reached at the result that our
alternative hypothesis is accepted. Hence it can be concluded that that the 5
Ltr. and 20 Ltr. bottles are usually preferred only during special occasions
such as marriage and Birthday parties. Otherwise the 1 ltr and 500 ml bottles
are the most preferred once.
Response % of respondents
Disagree 25%
Indifferent 5%
46% agreed to the fact that advertising of packaged drinking water affected
their purchase while 10% strongly agree, 25% of the respondents disagreed,
14% strongly disagreed, while 5% consumers said they were indifferent
towards it.
HYPOTHESIS TESTING
DF = 5-1 = 4
At alpha .05 and 4 degrees of freedom, the critical value from the chi
square distribution table is 9.49
Disagree 25 20 5 25 1.25
2=53.1
Interpretation:
As the Chi-square test statistics 53.1 exceeds the critical value of 9.49 hence
null hypothesis is rejected and hence we reached at the result that our
alternative hypothesis is accepted. Hence it can be concluded that
advertisements affect purchase decision of Mineral Water.
Yes 51%
No 47%
Can’t say 2%
It was seen in the survey that 51% said that their choice of mineral water was
readily available everywhere, whereas 47% disagreed and 2% were not sure.
9. GROWING HEALTH CONSCIOUSNESSAMONG
INDIANS
Yes No
73% 27%
The observation shows that most of the population in Delhi & its NCR agree
that Indian are getting Health Conscious now-a-days
10.PREFERENCE FOR MINERAL/PACKAGED
WATER OVER NORMAL WATER BECAUSE OF
HYGIENE
Yes No
82% 18%
The reason for the higher preference for Mineral water considering hygiene
important may be the fact that the normal water which we get is not always
very hygienic and may cause many diseases, also the increase in the
awareness of being fit and people becoming health conscious.
RETAILER RELATED OBSERVATIONS AND FINDINGS
According to the survey of retailers 62% said the most sold brand was Bisleri
followed by Kinley to which 26% agreed while 4% said that Aquafina was sold
most and 8% voted for other brands.
HYPOTHESIS TESTING
DF = 4-1 = 3
At alpha .05 and 3 degrees of freedom, the critical value from the chi square
distribution table is 7.82
1 ltr 14 12 2 4 0.33
5 ltr 5 12 -7 49 0.75
20 ltr 6 12 6 36 3
2=31.08
Interpretation
As the Chi-square test statistics 31.08 exceeds the critical value of 7.82 hence null
hypothesis is rejected and hence we reached at the result that our alternative
hypothesis is accepted. Hence it can be concluded that both 0.5 Ltr and 1 Ltr version
are selling well but 5 Itr are selling less as compared to others.
4. Basis of selling a particular Packaged Drinking Water Brand
Reasons % of Respondents
Demand by the customer 48%
Schemes offered by the companies 10%
Advertisement 14%
More margins 26%
Others 2%
Mostly the demand by the customer is the main reason for selling of
particular brand of Packaged Drinking Water and then it comes to schemes,
advertisements and margins. The other reasons included availability,
replacement of leaked bottles etc.
HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: Demand of the customer is not the main reason for selling of a
particular brand of packaged drinking water.
Ha: Demand of the customer is the main reason for selling of a
particular brand of packaged drinking water.
2=32.00
Interpretation
As the Chi-square test statistics 32 which exceeds the critical value of 9.49 hence
null hypothesis is rejected and hence we reached at the result that our alternative
hypothesis is accepted. Hence it can be concluded that demand of the customer is
the main reason for selling of a particular brand of packaged drinking water.
5. MORE MARGINS ON SELLING BRAND
Kinley 28%
Aquafina 11%
Others 21%
Among the 50 retailers that took part in the survey 40% said that they earn
maximum margins on Bisleri while 28% said Kinley and 11%& 21% said Aquafina
and others respectively.
According to the retailers the growth rate has been very high as 38% think that the
population has become health conscious, 32% say it is due to scarcity of drinking
water and 25% say it is due to increased advertisements while 5% say that there may
be other reasons like higher living standars, more disposable income etc.
HYPOTHESIS TESTING
DF=4-1=3
At alpha .05 and 3 degrees of freedom, the critical value from the chi square
distribution table is 7.82.
Others 5 12 -7 49 4.08
2 =108.7
Interpretation:
As the Chi-square test statistics value 108.07 exceeds the critical value of 7.82
hence null hypothesis is rejected and hence we reached at the result that our
alternate hypothesis is accepted. Hence it can be concluded that Last five year
seen a tremendous growth in the mineral water segment. The growth rate has
been very high, owing to increased health consciousness amongst the
population, arising from scarcity of potable drinking water.
7. FUTURE PROSPECTS OF MINERAL WATER
MARKET
Retailer's prediction Excellent Good Average Poor
40% of the total respondents said that the future prospects of the mineral
water industry is excellent, 30% said it was good while 16% gave it an
average & 12% said it had a poor future.
Lack of brand loyalty as MNC's are entering the market like Nestlé’s
Purelife, Pepsi's Aquafina.
Lack of Global Awareness in brand.
Lack of proper advertising to create brand awareness.
Market coverage is not fully utilized.
Institutional sales are not penetrated properly.
Lack of technological up gradation.
Opportunity
Numbers of players like Kinley and other local players are present in the
market have already captured the market.
Tough competition from MNC's like Coke & Pepsi.
Fluctuation in sales due to seasonality.
Local manufacturers who refill used bottle Hampers the image of the
industry.
Water filters and soft drink industry is a major threat to industry.
Coke and Pepsi are already having strong distribution network in bottle
water industry with their own fleet of trucks & vans.
PEST ANALYSIS
Political Analysis
Government failure to provide safe drinking water.
Laws encouraging ground water exploration.
Environmental regulations.
Economic Environment
Developing Economy.
Better infrastructure:
Social Environment
Scarcity of water.
Health conscious people.
Population growth rate.
Technological Environment
Economies of scale
CHAPTER SIX
DISCUSSIONS OF STUDY
100 consumers & 50 retailers were identified in some of major areas in the
city for conducting the survey.
FOLLOWING INFERENCES WERE DRAWN FROM THE
FINDINGS....
Brand awareness of the customers is mainly more about the top, more
publicized brands which they also brought more.
Initially we enquired about the numbers of brands that the retailers sell
and most of them specified not more than 3 - 4. This indicates that the
retailers prefer only the main brands.
Here two basic questions as to which brands are selling more and which
one is being supplied more were combined. The answer was obvious and
i.e., the one which is sold more is supplied more and it is 'Bisleri' (in
most cases).
51% of respondents said that their preferred brand was readily available
everywhere which is 5% lower to that of the people who said that their
preferred brand is Bisleri which means that there is a probability that
some consumers are not able to readily find Bisleri always.
Mostly the demand by the customer is the main reason for selling of
particular brand of packaged drinking water by a retailer but there were
considerable number of retailers who said higher margins was also one of
the deciding factors.
It was a mixed reaction of the retailers when asked about the highest
margin paid to them by a company out of the total 50, majority said that
Bisleri paid the highest.
Consumer’s answer to which size of bottle they prefer was 500ml and
1ltr bottles.
Regarding the growth and future prospect of the mineral water market
nearly all of the retailers were optimistic and ranked it as a very rapidly
growing excellent market.
CHAPTER SEVEN
They can tie up with large commercial complex, hotels & airlines
industries as they are the emerging sector.
After analysis of the data & facts we have collected from consumer &
the retailers & matching them with the objectives one can say that
there is very good future for mineral water market. Soft drink
market might be some threat to the mineral water at present but
within few years the scenario is going to change. Trend signifying
increasing health consciousness amongst Indians could also be
observed.
Market has seen a tremendous growth from the early nineties & now it
is increasing by 40% every year so one can easily say there is great
potential in the mineral water market.
Finally from the data collected at both primary and secondary level one
can confidently say that Bisleri as packaged water brand is the current
market leader.
CHAPTER EIGHT
LIMITATIONS OF THE STUDY
Any research or study always has some limitations under which this has to
be undertaken. This one too was not an exception. These limitations are
poised by the environment some external and some inherent. This study has
been conducted with utmost consideration to the adequacy of data and
quality of information, though as mention earlier the reliance on the sources
cannot be minimized to zero in context of precision. The limitation can be
enlisted as hereunder:-
However in spite of these limitations all efforts have been put to make the
report correct, genuine, and fulfilling the objectives of the reports.
CHAPTER NINE
REFERENCES
OTHERS –
Internet
Magazines
en.wikipedia.org/wiki/Bisleri
www.finewaters.com/Bottled_Water/India/Bisleri.asp
www.bisleri.com/
www.bottledwaterindia.web
www.nrdc.org/water/drinking/
ANNEXURE
CONSUMER QUESTIONNAIRE
QUESTIONS
a) Always b) Sometimes
c) Often d) Never
Q2. When feeling thirsty you opt for Mineral water over Soft drink,
juices etc
a) Always b) Sometimes
c) Often d) Never
Q3. How many brands of mineral water are you aware of?
a) 0-2 b) 3-5
c) 6-10 d) 10 and above
Q4. Is your preferred brand of mineral water easily available?
a) Yes
b) No
c) Can’t Say
a) 500 ml b) 1 ltr.
c) 5 Itr d) 20 Itr
Q6. Do you think mineral water is much more hygienic than normal water?
a) Yes b)No
Q7. Do you think the price the companies are charging, is worth the
product?
a) Yes b) No
Q8. Does advertising of this product has any effect on your purchase?
a) Yes b) No
Q9. Do you think Indians are getting more health conscious day by day?
a) Yes b) No
a) Bisleri b) Kinley
c) Aquafina d) other
RETAILER'S QUESTIONNAIRE
QUESTIONS
Q1. How many brands of mineral water do you sell (specify)?
a) 2-3 b)3-5
c) More ___________
a) Bisleri b) Aquafina
c) Kinley d) Others
a) Bisleri b) Aquafina
c) Kinley d) Others
Q6. Do you feel there is growth in the mineral water market in the last 5
years?
a) Yes b) No
Q7. If answer to above question is yes, then what do you think is the
reason for this
growth?